PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

Environmental optimization of logistics  DPEF.28  2.2.2.1.3. The logisticsoperationsare identifiedas havinga coreimpacton the carbon footprint of the Group’s manufacturingoperations. They represent 1.5%of theGroup’stotalCO 2 emissions.

GEFCO is committed to implementing a strict sustainable development policy with the following aims as agreed in the contract withGroupe PSA: make every effort to use the least pollutingtransportmethods n available, in linewiththe moststringent environmental standards; prioritise alternativesto road transportand make proposalsto n reduceCO 2 footprintof transport. Actionsundertakenby the Groupe PSAand associatedresults are presented intheCSRReport(Section 2.5.3.1). Greenhousegas emissions pertypeof shipment The methodology to assess greenhouse gas emissions is implementedby GEFCO in collaborationwith Eco Transit World. Energy consumptionis determinedfor each traffic flow and by mode of transport,by using an emission factor correspondingto this energy.Thismeasurement is performedin CO 2 equivalent(thus including other greenhouse gases). The scope for downstream distribution includes capillary flows to thedealers.

Supply chain ambitionfor carbon footprinthas been definedon a long termhorizon.It aims at reducingcarbonemissionfor logistics per vehicle of one third between 2016 and 2035, in continuation with previous carbon footprint roadmap. This means an average 2.1% decreaseper year. Groupe PSAand GEFCO signed an exclusivity agreement under whichthe car manufacturerentrustsGEFCOwith the management andoptimisation of its entire global manufacturing supply chain. As a strategicsupplier,GEFCOis requestedto be fully involvedin the Group’s strategy for assessing social and environmental performance.Its results are regularlymonitoredat the Executive level of the Company under a Corporate Business Review. 23 GEFCO subsidiaries have ISO 9001 certification (concerning 254 sites), and 15 haveISO 14001certification(concerning61 sites).

CO 2 eq. emissions in tonnes – 2018

CO 2 eq. emissions in tonnes – 2019

TOTAL

879,344

808,674

Upstream transport

Road 479,086

74% 459,187 21% 100,815

78% 17%

Air

133,952

Rail Sea

8,668

1%

3,534

1%

29,696 651,401

5% 23,510 100% 587,046

4%

Total

100%

Ratio of kg of CO 2 from transport/vehicle produced upstream

204

192

Downstream transport

Road 182,494

80% 181,123

82%

Rail Sea

7,547

3%

7,108

3%

37,900 227,941

17% 33,396 100% 221,627

15%

Total

100%

Ratio of kg of CO 2 from transport/vehicle distributed downstream

62

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INDUSTRIAL DISCHARGES AND POLLUTANTS: MANAGING THE IMPACTS 2.2.2.2. ON THE ENVIRONMENT AND LOCAL RESIDENTS Controlling atmospheric emissions 2.2.2.2.1.  DPEF.18  The strategy to reduce these emissions is being deployed,using bestavailable technologies in the following directions:

optimising paint shops by using equipment with higher n applicationefficiencyto reduce the use of conventionalpaints and related solvents, by selecting low-solvent paints and by recyclingused solvents; designing low-emission paint shops in the new plants by n manufacturing a narrowerrangeof products(reducingtheprimer stage); installingair treatmentequipmentthat incineratesVOCs on site n when necessary; encouragingthe sharingof experienceand best practicesamong n Groupplants. Continuedsystematicimplementationof the best technologiesat cost-effectiveprices is enablingthe Group to steadily improve its performance.VOCemissionsper vehicleproducedhavebeenbelow 3kg since 2013, with each plant complying with VOC Directive 2010/75/UE requirements, including plants out of Europe.

The processes put in place in automotive manufacturing use chemicalproducts,and the Group is seekingto limit their use and impact. Volatile organiccompounds Volatile organic compounds(VOCs) are monitored,and an action plan iscreatedto reducetheir emissions. Within the Automotiveactivities, overall emissionsof VOCs from the Group’spaintshopfacilitiesremainmarginalcomparedwith the total VOCsdischargedinto the atmosphere.As an illustration,VOC emissionsof Groupe PSAFrench plants representless than 1% of total emission in France (source CITEPA: emissions inventory of atmosphericpollutantsandGHG in France2014,or 689 kt),Despite this fact, VOC emissionremainthe main challengeof car assembly plants, dueto paint shops emissions.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT